Short answer
Prioritize and invest in both product and service quality as primary drivers for achieving a sustainable competitive advantage and enhancing business performance, especially in competitive markets.
- Field
- Innovation & Markets
- Source
- Journal of Strategic Innovation in Economics and Business (2025)
- Method
- Quantitative research using Structural Equation Modeling (SEM-PLS).
- Sample
- 101 MSME owners
- Evidence
- Strong effect
Enhancing product and service quality significantly boosts competitive advantage, which in turn amplifies business performance for small and medium enterprises. This innovation & markets research insight is drawn from a 2025 study published in Journal of Strategic Innovation in Economics and Business. Using Quantitative research using structural equation modeling (sem-pls). with 101 MSME owners, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Prioritize and invest in both product and service quality as primary drivers for achieving a sustainable competitive advantage and enhancing business performance, especially in competitive markets.
Product and Service Quality Drive Competitive Advantage in Fried Chicken MSMEs
Enhancing product and service quality significantly boosts competitive advantage, which in turn amplifies business performance for small and medium enterprises.
Journal of Strategic Innovation in Economics and Business · 2025
Key Findings
- 01Product quality has a significant positive effect on competitive advantage (path coefficient = 0.456).
- 02Service quality has a significant positive effect on competitive advantage (path coefficient = 0.536).
- 03Competitive advantage has a significant positive effect on business performance (path coefficient = 0.425).
- 04Competitive advantage partially mediates the relationship between product quality and business performance.
- 05Competitive advantage partially mediates the relationship between service quality and business performance.
Application
Design takeaway
Prioritize and invest in both product and service quality as primary drivers for achieving a sustainable competitive advantage and enhancing business performance, especially in competitive markets.
How to apply
For businesses in competitive food service markets, conduct a thorough review of current product quality standards and customer service protocols. Implement targeted improvements based on customer feedback and competitor analysis, focusing on aspects that create unique value.
Project actions
- 01When researching a product or service, consider how its quality contributes to a user's overall experience and perception of value.
- 02Think about how to measure both product and service quality in your own design project.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilizes a robust quantitative methodology (SEM-PLS) for empirical validation.
- +Provides a high R² value, indicating strong explanatory power of the model for business performance.
Limitations
The study's findings are specific to a particular industry and location, so direct application to vastly different contexts might be limited. The focus on owner perception might not fully capture customer experiences.
Reliability & validity
The use of SEM-PLS with established scales for quality and performance would contribute to the reliability and validity of the findings. However, reliance on self-reported data from owners introduces potential for common method bias.
Think critically
How might the perceived 'quality' of a product or service differ between the business owner and the end-user, and how could this discrepancy impact the effectiveness of quality-focused strategies?
Design Principles
"Quality-driven differentiation leads to superior market positioning and business outcomes."
This research highlights that for resource-constrained businesses, focusing on quality-based strategies, rather than price alone, can lead to superior and sustainable competitive advantages. This is particularly relevant in competitive markets where building strong customer relationships and offering superior offerings are key differentiators.
What This Means for Your Design
Making your fried chicken taste great and providing excellent customer service helps your business stand out from competitors and perform better.
How to use in your project
- 1.Use this research to justify focusing on specific quality improvements in your design project, linking them to potential competitive advantages and business success.
Add to My Project
Quick Cite
Paragraph starter
This study demonstrates that in competitive markets, prioritizing product and service quality is a powerful strategy for achieving a competitive advantage and enhancing business performance. For instance, the research found that both product quality (path coefficient = 0.456) and service quality (path coefficient = 0.536) significantly contribute to a stronger competitive position, which subsequently boosts overall business success. This suggests that design projects aiming for market viability should focus on developing and delivering superior quality offerings that are difficult for competitors to imitate.
Source
Journal of Strategic Innovation in Economics and Business
Driving Business Performance in Jakarta’s Fried Chicken MSMEs: The Role of Product and Service Innovation in Creating Competitive Advantage
journal · 2025
View sourceQuestions About This Research
- What does the research say about product and service quality drive competitive advantage in fried chicken msmes?
- Prioritize and invest in both product and service quality as primary drivers for achieving a sustainable competitive advantage and enhancing business performance, especially in competitive markets. Evidence: Journal of Strategic Innovation in Economics and Business (2025).
- Why does "Product and Service Quality Drive Competitive Advantage in Fried Chicken MSMEs" matter for design?
- This research highlights that for resource-constrained businesses, focusing on quality-based strategies, rather than price alone, can lead to superior and sustainable competitive advantages. This is particularly relevant in competitive markets where building strong customer relationships and offering superior offerings are key differentiators.
- How can designers apply this research?
- Prioritize and invest in both product and service quality as primary drivers for achieving a sustainable competitive advantage and enhancing business performance, especially in competitive markets.
- What were the main findings?
- Product quality has a significant positive effect on competitive advantage (path coefficient = 0.456).. Service quality has a significant positive effect on competitive advantage (path coefficient = 0.536).. Competitive advantage has a significant positive effect on business performance (path coefficient = 0.425).. Competitive advantage partially mediates the relationship between product quality and business performance.
- What research method was used?
- Quantitative research using Structural Equation Modeling (SEM-PLS). with 101 MSME owners.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2025 journal from Journal of Strategic Innovation in Economics and Business.
- What should I do differently in my next project?
- For businesses in competitive food service markets, conduct a thorough review of current product quality standards and customer service protocols. Implement targeted improvements based on customer feedback and competitor analysis, focusing on aspects that create unique value.
- What are the limitations?
- The study is specific to the fried chicken MSME sector in Jakarta, and findings may not be directly generalizable to other industries or geographical locations. The focus is on owner perceptions, which could introduce bias.